Electronic Signature Software Company DocuSign Inc. rose 38 percent on the first day of trading in the US, after taking $ 629 million as part of its IPO.
The stock climbed 35 percent to $ 39.10 at 2:18 pm in New York, the San Francisco-based firm estimates at about $ 6 billion. According to Bloomberg, DocuSign sold 21.7 million shares for $ 29 per share on the fourth largest technology and communications exchange on a US stock exchange this year.
The company, which has been listing for at least five years, initially marketed the stock for $ 24 to $ 26 apiece. This range was raised to $ 26 to $ 28 after investors showed strong demand for the stock during the roadshow.
DocuSign will use the proceeds to continue to invest heavily in sales and marketing to expand in the US and overseas, said Dan Springer
"We will aggressively continue to invest in the future," Springer said in a Friday Interview with Bloomberg TV. "We think we've just penetrated a small part of the opportunity."
The company will focus on growth by gaining new customers, especially overseas, where it currently only generates 1
More than 370,000 companies use DocuSign software to automate business agreements and electronic signatures. It lost $ 52 million on sales of $ 519 million for the year ended January 31. In the previous year it lost $ 115 million at $ 382 million in sales.
The listing is nearing the IPO of Chinese video company iQiyi Inc., which raised $ 2.25 billion, and file storage company Dropbox Inc., with $ 869.4 million in stock at a rating of $ 8 , 2 billion sold. The DocuSign listing is the breeding ground for technology IPOs: A mid-sized company selling to business customers.
Another technology company, Smartsheet Inc., priced its stock on Thursday to raise $ 15, $ 1 over the market price reach by $ 175 million. Smartsheet rose 25 percent on Friday. A third, Carbon Black Inc., is expected to price its offer of up to $ 136 million on May 3.
Pivotal Software Inc., backed by Dell Technologies Inc., the third-largest tech IPO of the year, received lukewarm reception after listing $ 638 million. The stock has risen only 21 percent since it praised on April 20th. Chinese Video Website Bilibili Inc. declined 5.3 percent from its $ 483 million IPO on March 28. Both offerings are within their marketed equity price range.
Road to Initial Public Offering
DocuSign, founded 15 years ago, has a long road to public release. The management had discussed the plans for an IPO since at least 2013. His listing was slowed by a lengthy CEO search and conflicting views between his 12-member board and 120 board members. Springer was hired as a boss last year after a 15-month search.
"I think that this company was actually ready for a while IPO," he said.
He set about achieving three things before he made them public. he said. DocuSign needed a positive cash flow, a proven ability to expand internationally, and the right management team to serve public investors. It has checked all these boxes, he said.
DocuSign has more than $ 450 million in private funds from investors including Microsoft Corp. and Venture Capital Companies Little Perkins Caufield & Byers, according to his website. 19659003] Morgan Stanley and JPMorgan Chase & Co. head the bid. The Company is listed on the Nasdaq Global Select Market under the symbol DOCU.